Expats Choose To Remain Abroad

Despite rising costs in many countries, British Expats are largely deciding to stay abroad rather than return to the UK.

London, UK (Pryce Warner International) September 16th, 2011 – Ninety percent of British Expats are determined to remain abroad even though they are seeing their cost of living rise considerably.

The recent survey showed that Expats would rather stay abroad and lose money or experience a loss of income rather than return to the UK. This is despite the fact that many of them initially moved abroad to enjoy a better standard of living.

The vast majority of Expats would choose to remain abroad regardless of circumstances, and 25% surveyed said that they would rather move to another country than move back to the UK.

Many cited the fact that the UK had as bad or worse economic prospects that their adopted home, and that the overall lifestyle abroad remained preferential to that in the UK.

Two main reasons were cited for the fall in incomes. Firstly, the drop in value of the pound and secondly, many Expats live in nations where their pensions is frozen at the rate it is first drawn at.

This has become a particular problem in Canada and Australia, where inflation has slowly eroded the value of many people’s pensions. For example people who retired on a pension of £100 per week in 1980, would be receiving the same amount today.

Another common reason many cited for remaining abroad was that their children’s lives had improved considerably. This was due to the improved educational and social opportunities that come with living abroad.

David Harra, a Senior Market & Investment Analyst with Pryce Warner International, a financial services provider for Expats, commented: “The fall in value of the pound has hit many hard, and although this survey reveals that the vast majority wish to remain abroad, in countries like Spain some have been forced to return to the UK. Currency fluctuations can often mean that pension incomes will take a big hit. One way to avoid this is to ensure that your pension assets are investment in a currency diversified format e.g. a QROPS. These are pre-diversified tax wrappers that help protect your income from any swings in currency value. When retiring abroad, it is also highly important that you speak to independent financial advisors in order to ensure that all your financial needs are handled quickly and comprehensively.”

Pryce Warner International Group provide International Asset & Investment Management, Independent Financial Advice & QROPS Overseas Pensions.

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By: Aneil Fatania
Financial Editor
Pryce Warner International Group
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